Leonardo wins Indonesian fighter jet deal, eyes helicopter order
Italian defense contractor Leonardo has secured an order for a dozen M-346F light fighters from Indonesia, bolstering European arms exports to Southeast Asia despite Jakarta's notoriously fragmented procurement strategy.
Indonesia has ordered a dozen M-346F Block 20 light fighters from Leonardo, with the first deliveries scheduled for 2030. The deal makes Indonesia the 23rd operator of the M-346 platform and the first Asian customer for the newest Block 20 variant.
For Leonardo, the contract is a tangible win in a competitive market, arriving just eight months after the variant's initial order. Lorenzo Mariani, Leonardo’s CEO and General Manager, said: “The introduction of the M-346F in Indonesia provides clear evidence not only of the aircraft system’s inherent quality, but also of the country’s continued and yet growing trust in our capabilities across domains.” The contract also includes the localization of maintenance, training and support capabilities, providing a long-term revenue stream.
The sale underscores Europe's growing footprint in Indonesia's defense modernization, complementing Jakarta's ongoing induction of French-made Dassault Rafale jets. However, this European success sits within a deeply complicated Indonesian procurement strategy. The air force already flies American F-16s and Russian Su-27s and Su-30s, while expressing interest in the Turkish Kaan, Chinese J-10 and Korean KF-21.
This diversification creates operational headaches. “The Indonesian Armed Forces have been facing existing challenges related to interoperability,” Alban Sciascia, director of consultancy firm PT Semar Sentinel Indonesia, told Defense News. “It’s no secret that Indonesia has been focusing on procuring different equipment from different countries, as part of its diversification strategy, and that its joint operations concept is limited because of the relative inability to get all this equipment interoperating on the battlefield.”
Beyond the fighter deal, Leonardo is positioning itself for further sales. The company, alongside PT ESystem Solutions and the Indonesian Ministry of Defense, signed a letter of intent on July 21 for AW149 medium helicopters. “If followed by a contract, this could lead to the supply of AW149 helicopters for search and rescue and disaster relief, for both land-based and embarked operations,” Leonardo said.
The Indonesian Navy currently operates eleven Airbus AS565 Panther helicopters, but needs more shipboard aircraft to patrol the world's largest archipelagic waters. For European investors, Leonardo's double push into Jakarta highlights how the continent's defense firms are capitalizing on Asian demand, even when local buyers lack a coherent acquisition plan.
